Update on American Municipal Power Lawsuit
Posted on May 10, 2012 in Litigation, Project Development | Comments Off on Update on American Municipal Power Lawsuit
American Municipal Power, Inc., an Ohio coop, sued a company last year for breach of contract and two torts, seeking $97 million in damages per claim. The suit alleges that Bechtel Power Corp. lowballed its estimate of the construction costs for a coal-fired supercritical power plant in Ohio by more than $1 billion, and then unexpectedly raised its estimate by $1 billion, forcing the coop to scrap the project. The judge recently ruled that the facts alleged by the coop support a plausible claim that Bechtel wantonly failed to inform the coop of the price increase in a timely manner, but found the tort claims redundant. For more information about this case, click here.
